Core Insights - The internationalization of the securities industry is experiencing rapid development, with a significant shift in the role of Chinese securities firms from "participants" to "main players" in the Hong Kong market [2][3] - The report from the China Securities Association indicates that securities firms with a high degree of internationalization have seen their international business revenue account for approximately 25% of total income, marking it as a crucial profit source [3][4] Group 1: Domestic Securities Firms - Chinese securities firms have established 38 overseas primary subsidiaries, extending their business reach globally through various branches and subsidiaries [3][4] - In 2024, Chinese securities firms facilitated 64 companies to list on the Hong Kong Stock Exchange, raising a total of 864 billion HKD, and in the first nine months of 2025, they assisted 65 companies, raising 1,874 billion HKD [3] - Firms like Industrial Securities, GF Securities, and Orient Securities are leveraging Hong Kong as a base to explore digital assets, cross-border risk management, and European mergers and acquisitions [4] Group 2: Foreign Securities Firms - There are currently 16 foreign securities firms operating in China, with 11 being foreign-controlled, including five wholly foreign-owned companies [5][6] - Foreign firms are diversifying their services beyond traditional trading and underwriting to include investment consulting and asset management, aiming to capture opportunities in the evolving financial landscape [5][6] - Different types of foreign firms, such as international investment banks and commercial banks, are adopting distinct development paths based on their backgrounds and strengths [6][7] Group 3: Challenges and Future Outlook - Despite significant achievements, the internationalization of the securities industry faces deep-rooted challenges, including the need for better capital strength and management integration for Chinese firms [8][9] - Foreign firms are struggling with local adaptation, often facing difficulties in balancing global operational standards with local market needs [8][9] - The China Securities Association aims to enhance the international capabilities of the industry through improved self-regulation and collaboration, anticipating a more favorable institutional environment for internationalization [9][10]